It just hit me...thats a LOT of freakin' TAX

[SuperFriend_XP]

So I was working at this office last summer at a pretty decent $10/hour (im still a student), and they called me back for this summer. The big boss said "i like your style, XP im putting you on salary at $xxxx". This was such great news, no more counting hours to make sure I got every penny, plus sometimes I couldnt make it to work so I didnt get paid for those days. Anywho there I was thinking "darn tootin'", just before I went to inetpay.adp.ca to figure out how much I was actually gunna make. I entered my details and all and clicked calculate...holy moly a big fat 20% of my hard earned moola was goin' to government. Anywho, this is my first REAL job (no more darn Wendy's) and I was just wondering how this tax return mumbo jumbo works (Im comin' for you Martin!!)

[Digiital]

Welcome to the real world. I'm at atleast 40%!!!!

[Bogie]

Ever wonder why the underground economy is alive and flourishing? I remember about 30 yrs ago I was woken up to how much tax comes off an overtime paycheque :eek: ... my first one was hit for 80% tax. Government "incentive" plan for employer to hire more people and reduce overtime to existing employees.

20% - a luxury :D

This is where you learn how to do your tax returns diligently.

[reiver]

Remember this next time you're waiting 6 hours in the emergency room for something. :)

[sybil]

Think rrsp! Might as well get some of it back for a good cause - your retirement!

[Bogie]

Think rrsp! Might as well get some of it back for a good cause - your retirement!
Boy, wish I had RRSPs started when I was a student! If I recall, retirement was just too far away to even think about LOL

Wise investment - yourself and your future.

[dbusguy]

Welcome to the real world.
Now you know why your parent were always short of money and couldn't afford that extra video game for you.
I look at my pay stubs.
1/3 I never see :(

[Menthol]

Ask him to add two more "xx" behind that figure :)



So I was working at this office last summer at a pretty decent $10/hour (im still a student), and they called me back for this summer. The big boss said "i like your style, XP im putting you on salary at $xxxx". This was such great news, no more counting hours to make sure I got every penny, plus sometimes I couldnt make it to work so I didnt get paid for those days. Anywho there I was thinking "darn tootin'", just before I went to inetpay.adp.ca to figure out how much I was actually gunna make. I entered my details and all and clicked calculate...holy moly a big fat 20% of my hard earned moola was goin' to government. Anywho, this is my first REAL job (no more darn Wendy's) and I was just wondering how this tax return mumbo jumbo works (Im comin' for you Martin!!)

[freddy here]

Ask him to add two more "xx" behind that figure :)


RIGHT ON, and then see how that big fat 20 % gonna change instantly, or is

it magically....:vxd: .

[SuperFriend_XP]

RRSP...now? I only have so-many opportunities to blow my cash on magic beans while Im young :)

Anywho, will I ever be seeing that 20%? I mean refund wise. I've never filed a tax return and I'm totally in the dark about the procedure.

[Dr.Dan]

The earlier you start your RRSP the better.
You can invest so much less and have so much more when you want to retire...
Don't wait til you're 30 to start an RRSP... start it NOW!

How much you'll get back in a refund will depend on your total income for the year... but if you're working full time now, you won't see much of it back :(

[SuperFriend_XP]

I'm working full time for the next 8 weeks, so I'm not going to see any of my 20%? :(

[Bogie]

Your tax deducted is usually based on the amount of your pay cycle as if it was the same all year. If you won't be full-time, all the time, you will most likely see a good refund. Work it all out on the tax form at the end of the year.

[BillD]

If you are a student, you don't have to pay any tax. If you are goint to be below the tax threshold, there is no need to pay any.

[BillD]

Welcome to the real world. I'm at atleast 40%!!!!
Interesting. You must make really big money to pay 40%. My taxes never exceed 33% even on cheques for over $3,000.00 for the week.

[SuperFriend_XP]

If you are a student, you don't have to pay any tax. If you are goint to be below the tax threshold, there is no need to pay any.

And what is the threshold?

[Bogie]

Suggestion: Allow the tax to be withheld (taken off your cheque), regardless. It becomes like money in the bank that you can't touch until tax return time when you get it back as a refund.

[SuperFriend_XP]

yeah thats what I was thinking - don't want too many magic beans just yet.

[Lesley]

Regarding rrsps and retirement planning. If you start now making small contributions to a plan and increase them as you make more money you may not have quite as much spare cash for toys but when you're 50 and want to retire early you might have the opportunity to do just that. There's also a benefit for you in that you'll get more of your 20% back when tax time comes.

[Bogie]

Regarding rrsps and retirement planning. If you start now making small contributions to a plan and increase them as you make more money you may not have quite as much spare cash for toys but when you're 50 and want to retire early you might have the opportunity to do just that. There's also a benefit for you in that you'll get more of your 20% back when tax time comes.
You can't get back more than you contribute in tax.

[SuperFriend_XP]

I think thats what he meant :)

[bigzig]

i know some who are taxed at 49%

[blinky]

[QUOTE=Anywho, will I ever be seeing that 20%? I mean refund wise. I've never filed a tax return and I'm totally in the dark about the procedure.[/QUOTE]

:eri: did someone say you'd get it back as a refund? who said you'd get it back for any reason?

someone please explain the likelihood of refunds to this poor soul . . . oh the optimism of youth. i truly miss it . . .

[stuff]

don't worry about it now too much, you will get all of it back in april(tax return). You are allowed to earn about 8000 tax free, and since you are a student you get an allowance for each month you are in school f(i believe it is 80 but i could be wrong). So if if you earn less than 10 gs you will get everything back except for cpp and ei deductions. If you are in uni/college your tution is tax deductable, you can bank this and use it when you are working full time.

[SuperFriend_XP]

Sweet, thanks stuff :)

Like Seinfeld would say, blinky's a funny f*&# :):)

[BillD]

When February comes, you can download free software to do your tax return, and netfile, so you have your money back in 2 weeks.

[SuperFriend_XP]

oh niice

[frostyone]

First time eh?

You'll receive a T4 slip. sometime next year.
That will have your earnings and deductions on it.
You'll also get a tax form for 2005.
You'll require a bottle of aspirin, or scotch, or both.

You'll read the tax form.
You won't understand it.

You will try to make sense of add 1.75% of line 140, schedule 47(A) to line 142 subsection 43(B), deducting of course Line 47 schedule 32 C. Unless of course there's a full moon. (SEE section 64 para. 3(b.) subsect 32)

Consume aspirin.

When you're done you'll have entered all your income, and all your deductions. You'll then find your taxable income.
Then you'll see what you owe.
As you're a student, you've probably overpaid.
Difference between what you owe and what you've already paid is your refund.
If you haven't paid enough (not likely as student) you owe them money.
And would you enclose a cheque or your first born .

Don't worry.
It only gets worse as you get older.

But for real screams of pain, there's nothing like discovering one's marginal tax rate. :)

[woodpusher]

When February comes, you can download free software to do your tax return, and netfile, so you have your money back in 2 weeks.In November you can sell your return for instant cash. I think the going rate is 3to5%.

[Lesley]

That's why my last line said "more of" instead of "more than". I know you can't get back more tax than you've paid.


You can't get back more than you contribute in tax.

[Lesley]

You're correct, that's what I meant. Just for future ref, I'm a she, not a he.


I think thats what he meant :)

[SuperFriend_XP]

Sorry Lesley, I havent been on the boards for a while :p